Financial management

Financial management in Bank-financed operations is a process which contributes to the optimization of financial and economic benefits from an investment. It ensures accountability and efficiency in the management of public resources by providing:

1. Essential information needed by those who manage, implement, and supervise projects, including government oversight agencies and financial institutions;
2. Assurance needed by the borrower country, lenders, and donor community that funds are being used efficiently;
3. A deterrent to fraud and corruption, since it offers the necessary controls to detect unusual occurrences quickly.

The Financial Management mandate of the Bank Group, as enshrined in the agreements establishing the Bank has two overarching strategic policy objectives:

1. Fiduciary objective - To ensure a reasonable level of assurance on the appropriate use of proceeds of any Bank financing, with due attention to considerations of economy and efficiency; and
2. Development objective -To help countries improve their performance in Public Financial Management, as sound public financial management is critical to the achievement of public policy objectives, including poverty reduction and combating corruption, by contributing to efficiency, controls, transparency and accountability.

The effective realization of this mandate enjoins the Bank to formulate and implement an appropriate and comprehensive Financial Management Policy Framework to guide and support the design and implementation of Bank-financed operations in Borrower countries.

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Useful links

• Consultancy Services (E-Consultant)
• Independent Review Mechanism (IRM)
• Integrity and Anti-Corruption